It is critical to perform a due diligence review following a merger, acquisition, or divestiture. Such events involve significant changes to the organizational structure, assets, and operations, necessitating thorough review to identify risks, synergies, and compliance issues.
References in COBIT 2019 Design and Implementation:
COBIT 2019 Framework: Governance and Management Objectives, APO12 (Managed Risk):This objective emphasizes the importance of risk management during significant organizational changes, such as mergers and acquisitions.
COBIT 2019 Implementation Guide, Chapter 3:This chapter outlines the need for due diligence in evaluating potential risks and ensuring that governance and management practices are adapted to new organizational contexts.
A due diligence review ensures that all aspects of the merger, acquisition, or divestiture are carefully assessed, mitigating risks and supporting a smooth transition.
